Business Directories

UAE economic growth to hit 3.6pc: IMF

Abu Dhabi, July 3, 2013

The UAE is witnessing an economic revival as a direct result of rising oil prices and non-oil economic activities backed by investments, trade and tourism, an IMF report has said.

The IMF final report on the UAE for 2013 predicted that the rate of GDP growth will reach 3.6 per cent in 2013, and rise to 3.7 per cent in 2014 and 3.8 per cent in 201, said a statement from UAE’s Ministry of Finance.

The report also stated that the non-oil sector will achieve further growth in 2013 that will amount to 4.3 per cent; supported by the recovery in the construction and real estate sectors as well as the continued growth in tourism related sectors.

It highlighted Dubai's position as an international destination for tourism and real estate investment in the region, where it recently announced plans for establishing large new projects in both the real estate and tourism sectors.

The UAE expanded its production of hydrocarbons at about 5.2 per cent, and the surplus in the current balance rose to 17 per cent of GDP in 2012.

The report indicated a rise in the Central Bank’s reserves which amounted to $47 billion for 2012. Forecasts also show that trade balance is expected to rise through achieving a surplus of 15 per cent in 2013. This will be supported by increasing oil prices, non-oil exports, trade and re-exports.

The Fund’s statistics point out the most critical economic indicators for the UAE up to 2018, where the nation’s GDP is expected to increase from $377 billion recorded in 2012 to $474.2 billion in 2018.

The report forecast an increase in commodity and services exports and re-exports from $347 billion in 2012 to $542.1 billion in 2018. Non-oil exports will also increase (without including re-exports of the same) from $96.3 billion in 2012 to $193 billion in 2018.

With regards to the unified budget covering the years from 2008-2014, studies have shown that the net revenue for 2011 amounted to Dh439.6 billion, which rose to Dh494.4 in 2012, and are expected to rise to Dh488.1 billion in 2013.

The report also showed that revenues resulting from non-oil exports were recorded at Dh77.9 billion in 2011 and Dh98.5 billion in 2012. This figure is expected to rise to Dh105.3 billion in 2013 and Dh114 billion in 2014.

The report highlighted a rise in hydrocarbon exports, where they amounted to Dh 361.7 billion in 2011 and Dh395.9 billion in 2012. Exports are expected to rise up to Dh382.8 billion in 2013.

Obaid Humaid Al Tayer, Minister of State for Financial Affairs at MoF, said: “The indicators and statistics stated in the final report of the IMF report highlighted the strength and durability of the UAE’s economy, and the efficiency of economic and financial policies adopted by the country. In fact, this contributed to our ability to face obstacles resulting from the financial and economic crises experienced worldwide.” - TradeArabia News Service